How does tax law allow businesses to recover the costs of capital assets? Q.How does tax law allow businesses to recover the costs of capital assets? A.Cost recovery is the ability to recover (deduct) the costs of an investment. The recovery of investments in tangible assets happens through depreciation, and the recovery of intangible assets is through amortization. Depreciation and amortization can be measured for economic, financial, or tax purposes. Read more about How does tax law allow businesses to recover the costs of capital assets?
What did the 2022 Inflation Reduction Act do? Q.What did the 2022 Inflation Reduction Act do? A.After attempts to pass President Joe Biden’s Build Back Better agenda stalled in Congress, lawmakers in the latter part of 2022 enacted scaled-back legislation that increased taxes on large corporations and investors, established several tax incentives aimed at addressing climate change, and increased the IRS’s budget to improve tax compliance and enforcement. Read more about What did the 2022 Inflation Reduction Act do?
How did the major COVID-19 pandemic relief bills affect taxes? Q.How did the major COVID-19 pandemic relief bills affect taxes? A.The onset of the COVID-19 global pandemic in early 2020 prompted a sharp and severe global recession, as health authorities urged individuals to isolate as much as possible to slow the spread of the disease. To help keep businesses afloat during this period and aid people who lost work as layoffs surged, Congress adopted a series of measures, including tax cuts, to mitigate the economic damage and promote a faster recovery. Read more about How did the major COVID-19 pandemic relief bills affect taxes?